Better energy-efficient conditions in 46 schools and a clinical centre in Podgorica with EU, KfW and EBRD support
Montenegro is undergoing a major renovation wave, with large-scale investments to modernise public buildings – notably primarily schools and hospitals - now in full swing. These efforts are supported by the European Union (EU), German Development Bank (KfW), and the European Bank for Reconstruction and Development (EBRD) through the Regional Energy Efficiency Programme (REEP), which helps Western Balkan countries improve building energy performance and align legislation with the EU acquis.
At an event hosted at Europe House in Podgorica on 27 November 2025, representatives of the EU, the Government of Montenegro, KfW, and EBRD presented REEP’s transformative impact on Montenegro’s public infrastructure and green transition.
The total WBIF contribution to REEP is €276.5 million, including €90 million replenishment in 2025. Combined with loans from EBRD and KfW, REEP is delivering tangible improvements across education, healthcare, and residential sectors in Montenegro. Projects to refurbish the Clinical Centre in Podgorica, hospitals in Bijelo Polje and Cetinje and 46 schools are currently in implementation.
These efforts are expected to save 48,722 MWh of energy annually and reduce CO₂ emissions by 13,429 tonnes per year, which is equivalent to taking about 2,900 passenger cars off the road for a year.
Ekaterina Bakalova, Programme Manager for Energy at the European Commission’s DGENEST Western Balkans Investment Framework unit, emphasised: “The EU is Montenegro’s largest investor and strategic partner, supporting its EU accession with comprehensive financial and technical assistance. REEP exemplifies how the EU, alongside KfW, EBRD, and Montenegro’s government, drives sustainable, large-scale investments. Every renovated school and hospital enhances people’s quality of life. One of the pillars of the EU Growth Plan is enhancing economic integration with the European Union’s single market, where the integration and de-carbonisation of the Energy markets is of high priority.”
Beyond financing, REEP provides technical assistance for legislative work, and capacity-building, enabling Montenegro to adopt strategic documents and regulations aligned with the EU Green Deal and Energy Community objectives.
Admir Šahmanović, Montenegro’s Minister of Energy and Mining, stated: “Seven schools across Nikšić, Kotor, Tuzi, Bar, and Cetinje have been fully refurbished, enhancing comfort for students and staff. This programme improves quality of life sustainably, with high standards as a core principle.”
Pablo Obrador Alvarez, Head of Division Energy Southeast Europe and Turkey at KfW, noted: “Our Energy Efficiency in Public Buildings programme in Montenegro funds nearly €60 million for 19 schools, one elderly home, one administrative building, and the country’s first nearly zero-energy building. Many buildings, some dating back to the 1930s, have been refurbished to resolve issues like inefficient heating, poor insulation, and inadequate air quality, significantly improving conditions for students and staff.”
Remon Zakaria, EBRD Head of Montenegro, added: “We are proud to stand alongside the Government of Montenegro in delivering projects that make a real difference to people’s lives. Through our partnership with the European Union under the Regional Energy Efficiency Programme, we are investing in energy efficiency upgrades for 24 schools and modernising three hospitals across the country. These improvements will create better learning environments for thousands of students and safer, more modern facilities for patients and medical staff, while reducing the risk of cross-contamination. Beyond public buildings, under the REEP programme we are advancing policy reforms and enabling households to improve energy efficiency through dedicated credit lines with our partner banks. These efforts reflect our commitment to sustainability and higher living standards for all Montenegrins.”
Further reading
https://wbif.eu/news-details/energy-certificates-zero-emission-buildings
https://wbif.eu/news-details/eu-supported-investments-energy-efficient-schools-montenegro
https://wbif.eu/news-details/podgorica-hosts-regional-workshop-nearly-zero-energy-building-standards
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About REEP
Launched in 2013 under the Western Balkans Investment Framework (WBIF), the Regional Energy Efficiency Programme (REEP) supports renewable energy and energy efficiency investments across the region. With over €1 billion mobilised to date, it has refurbished more than 90 public buildings, supported 1,500 SMEs and 20,000 households. The achieved annual CO₂ emissions saved is equivalent to removing 183,000+ cars from the roads.
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About WBIF and Global Gateway
The Western Balkans Investment Framework (WBIF) contributes directly to Global Gateway, the EU’s strategy to boost smart, clean and secure connections in digital, energy and transport, while strengthening health, education and research systems worldwide. Global Gateway aims to mobilise up to €300 billion worldwide in investments through a Team Europe approach, bringing together the EU, its Member States and financial institutions to leverage investments for a transformational impact.